Oji Holdings (3861) Q4 2025 earnings summary

Executive summary

• FY2024 net sales rose 9.0% year-over-year to ¥1,849.3 billion, driven by the Walki Holding Oy acquisition and recovery at Pan Pac Forest Products Ltd.

• Operating profit declined 6.8% to ¥67.7 billion due to higher distribution and personnel costs despite increased sales volume.

• Profit attributable to owners of parent was ¥46.2 billion, a decrease of 9.1% year-over-year, impacted by foreign exchange losses and extraordinary items.

• Overseas sales ratio increased to 40.8% in FY2024, up 5.9 points from FY2023.

• The company continued portfolio transformation, including subsidiary sales and withdrawal from low-profit businesses.

Financial highlights

• Net sales: ¥1,849.3 billion (+9.0% YoY); Operating profit: ¥67.7 billion (−6.8% YoY); Net income: ¥46.2 billion (−9.1% YoY).

• Operating profit for domestic companies declined by ¥17.2 billion, while overseas companies saw a ¥12.3 billion increase.

• Gross profit increased to ¥349.4 billion.

• Net interest-bearing debt stood at ¥535.0 billion as of March 31, 2024, with a D/E ratio of 0.7x.

• Dividend per share increased to ¥24.00 (from ¥16.00), with a forecast of ¥36.00 for FY2025.

Outlook and guidance

• FY2025 forecast: Net sales ¥1,900.0 billion (+2.7%), operating profit ¥75.0 billion (+10.8%), net profit attributable to owners of parent ¥65.0 billion (+40.8%).

• ROE expected to rise from 4.3% in FY2024 to 6.1% in FY2025.

• Dividend payout ratio set at 50% from FY2025, with a minimum annual dividend of ¥24/share.

• Assumes exchange rate of 145 JPY/USD and stable raw material prices.

• New Medium-term Plan targets operating profit of ¥120 billion, net profit of ¥80 billion, and ROE of 8% by FY2027.